Can't really answer your questions based on the information you've provided. We would need to know WHY you're getting denied. You can check this link guidelines on min. required seasoning of various housing issues:
I'm not real sure how long a Died in Lieu stays o credit....probably at least 7 to 10 like all the other major derogs.
FHA will require a 3 year waiting period to purchase again....unless they change that guideline.
VA has a 2 year waiting period to purchase.
USDA has a 3 year waiting period.
Conventional financing (Fannie/Freddie) is 2 years w/ 20% down payment or 4 years w/ 10% down payment.
If you have an extenuating circumstance, that may reduce the waiting period, but is on a case by case basis.... more
If you have the ability, offer to repay the past due debt in full in exchange for an agreement to have the hit to your credit report removed. That would be a first step that I would take.
Other than that, speak with local lenders about what programs are available to you. I have heard of Wells Fargo doing some loans down to 560, but that requires a higher down payment and comes with a higher interest rate.
Best of luck in your situation,
It's more than real estate. It's RAYL-Estate!
Brian Rayl, REALTORÂ®, e-PRO, SFR
Keller Williams Elite